Which of the Following Is True of a Normal Distribution

question 43

Multiple Choice

Which of the following is true of a normal distribution?

• A)It is a theoretical relative frequency distribution.
• B)No actual set of scores is exactly normally distributed.
• C)The total area under the distribution is equal to 1.0.
• D)All the above.

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Definitions:

Future

A financial contract obligating the buyer to purchase an asset, or the seller to sell an asset, at a predetermined future date and price.

Compounded Monthly

This term describes the process where interest earned is added to the principal, and future interest payments are calculated based on the new total, on a monthly basis.

Monthly Payment

A regular payment made each month on a loan, mortgage, or other form of debt, typically including both principal and interest components.

Loan Term

The duration of time agreed upon by the lender and borrower for the repayment of a loan.